Hayman Capital won big in betting against United Development Funding, but its relentless criticism of the Texas real-estate lender is now under regulatory scrutiny
Kyle Bass’s market bet against a Texas real-estate lender seemed like an astute move.
Throughout 2015, the hedge-fund manager accused the lender, United Development Funding, of operating like a Ponzi scheme. Authorities opened civil and criminal investigations into UDF, and Mr. Bass counted his winnings as UDF stock eventually fell to $1.
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